Paramedics Defeat Noncompete and Customer Nonsolicit Preliminary Injunction on Grounds of Potential Harm to Public and Paramedics

A private medical transport service was recently unsuccessful in persuading the U.S. District Court for the Northern Mariana Islands to enter a preliminary injunction prohibiting two ex-employees from competing with and soliciting customers of their former employer. The judge cited Section 188 of the Restatement of Contracts (Second) as authority for denying injunctive relief where the potential harm to the public and the defendants outweighed the likely benefits to the plaintiff. Further, according to the court, the names on the plaintiff’s customer list are not trade secrets. The relevant community is small, and so the names of people likely to need medical transport services are readily determinable. August Healthcare Group, LLC v. Manglona, Case No. 1:12-CVI-00008 (D. Northern Mariana Islands, Oct. 12, 2012).

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